Get Set for Retirement Preretirement Fiscal year 2024 SCRS PORS membership classes Class Two earned service began prior to July 1 2012 Class Three earned service began on or after July 1 2012 ID: 1029686
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1. Service retirement and benefit calculationGet Set for Retirement | PreretirementFiscal year 2024
2. SCRS, PORS membership classesClass Two: earned service began prior to July 1, 2012.Class Three: earned service began on or after July 1, 2012. Membership class affects:Service retirement eligibility; Average final compensation calculation; andCredit for unused leave at retirement.2
3. SCRS Class Two retirement eligibilityMust have five years of earned service.For an unreduced monthly retirement benefit, you:Must have at least 28 years of service; orBe age 65 or older.For a reduced monthly retirement benefit, you:Must be age 60 (permanent 5% reduction for each year before age 65); orMust be age 55 with 25 years of service (permanent 4% reduction for each year of service less than 28). 3
4. PORS Class Two retirement eligibilityMust have five years of earned service.For a monthly retirement benefit, you must:Have at least 25 years of service; orBe age 55 or older.4
5. SCRS Class Three retirement eligibilityMust have eight years of earned service.For an unreduced monthly retirement benefit, you must:Meet the Rule of 90 (age and years of service add up to at least 90); orBe age 65 or older.Rule of 90 example: 56-year-old member with at least 34 years of service would be eligible for retirement (56 + 34 = 90).For a reduced monthly retirement benefit, you must be age 60 (permanently reduced 5 percent for each year of age less than 65).5
6. PORS Class Three retirement eligibilityMust have eight years of earned service.For a monthly retirement benefit, you must:Have at least 27 years of service; orBe age 55 or older.6
7. SCRS, PORS service retirement monthly benefit7Your service creditA benefit multiplierYour average final compensation (AFC)Benefit based on formula that includes:
8. SCRS, PORS Class Two AFC calculationAFC includes your 12 highest consecutive quarters of earnable compensation and termination payment for up to 45 days of unused annual leave divided by 3.Up to 90 days unused sick leave at retirement added to service credit.8
9. SCRS, PORS Class Three AFC calculationAFC includes 20 highest consecutive quarters of earnable compensation divided by 5.AFC does not include unused annual leave payouts.No unused sick leave added to service credit.9
10. Monthly benefit calculation1101Early retirement reductions will apply for SCRS members who retire before reaching eligibility for an unreduced monthly retirement benefit. Reduction applies when choosing joint retiree/survivor payment plan.Step 1Multiply your AFC by 1.82% (SCRS members) or 2.14% (PORS members).Step 3Divide the result by 12 to arrive at your monthly maximum retirement benefit.Step 2Multiply the result by your years of service credit.
11. Class Two SCRS, PORS Option A exampleAFC = $30,000SCRS$30,000 × 1.82% =$546.00$546 × 28 years =$15,288.00$15,288 ÷ 12 =$1,274.00PORS$30,000 × 2.14% =$642.00$642 × 25 years =$16,050.00$16,050 ÷ 12 =$1,337.5011Early retirement reductions will apply to SCRS members who retire before reaching eligibility for an unreduced benefit.Reduction factors will apply to members who select a joint retiree/survivor payment option.
12. Class Three SCRS, PORS Option A exampleAFC = $30,000SCRS$30,000 × 1.82% =$546.00$546 × 30 years =$16,380.00$16,380 ÷ 12 =$1,365.00PORS$30,000 × 2.14% =$642.00$642 × 27 years =$17,334.00$17,334 ÷ 12 =$1,444.5012Early retirement reductions will apply to SCRS members who retire before reaching eligibility for an unreduced benefit.Reduction factors will apply to members who select a joint retiree/survivor payment option.
13. SCRS, PORS benefit estimatesCreate a benefit estimate in Member Access using:Your retirement account data;Your estimated AFC; andA selected retirement date. Request one from your employer.Request one from PEBA by phone, email or in person.13
14. Using your benefit estimateDetermine whether you want to buy service credit.Help choose your retirement date.Decide whether you want to provide a survivor benefit. 14
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